Greencore report strong improvement in trading and cash ow.

Greencore report strong improvement in trading and cashfl ow

Greencore Group plc has issued a trading update covering the 13 weeks from 26 March 2021 to 25 June 2021 (“Q3”), revealing strong revenue momentum with Group pro forma revenue 53.1% above prior year levels and only 2.8% below equivalent preCovid levels in Q3 19.

Revenue momentum has remained encouraging in the fi rst three trading weeks of July, they said, and notwithstanding the supply chain and labour challenges impacting the broader UK food industry at present, the Group added that it is confi dent in its ability to deliver strong year on year profi t and cashfl ow progression in the second half of the year. The Group now expects to generate an FY21 Adjusted Operating Profi t outturn of between £36m and £40m, versus previous guidance of above FY20 levels of £32.5m.

Commenting on the performance, Patrick Coveney, CEO, said: “We are encouraged by the improvement in revenue, profi tability and cash fl ow momentum in Q3 and the early weeks of Q4. Against the backdrop of the UK economy reopening fully, we are rebuilding our economic model eff ectively and sustainably with all stakeholders, supported by our long-standing customer relationships and further enhanced by the new business wins we have secured this year.

“The performance is underpinned in particular by the energy and dedication of our people. We are also delighted to have made progress in creating a fully recyclable sandwich skillet, a key commitment of our sustainability strategy. We have a strong position in the dynamic UK convenience food market and are confi dent about our medium-term prospects.”

The UK trading environment improved markedly in Q3, Greencore reported, as the economy re-opened and mobility restrictions were eased, supporting demand growth in food to go categories in particular. In addition to the underlying market recovery, the Group benefi tted from its strong market position in the grocery retail channel, its customer and format mix, and its portfolio across food to go and other convenience categories. It also worked closely with customers to reactivate product ranges and formats during the period with Group revenue growth in Q3 also being supported by an increasing contribution from new business wins.

Launch of Sysco Speciality Group creates fr esh proposition for operators

The launch of Sysco Speciality Group brings together fi ve specialist businesses - Fresh Direct, M&J Seafood, Freshfayre, Wild Harvest and KFF – each being a market leader in its own fi eld and now collectively off ering some of the very best in fresh produce, fi sh, deli, ingredients, and regional food.

“Sysco Speciality Group off ers a unique new proposition for UK hospitality operators,” said CEO, Raj Tugnait.

“Many customers are requesting consolidated deliveries of specialist fresh produce and ingredients, so by bringing these fi ve businesses together customers will enjoy all the benefi ts of receiving their fresh fi sh, fresh produce, and speciality ingredients in one single delivery. In addition, they will benefi t from improved effi ciency, cost savings and expertise, without having to compromise on quality, range, specialist service or expertise. This innovative solution will also protect the environment through fewer deliveries.

“With the backing of Sysco, the world’s global leader in foodservice, we have invested signifi cantly in increased stock levels to ensure product availability, as well as technology, logistics and infrastructure. Whether it’s the bespoke preparation of fresh fruit and veg, sauces and condiments in our ‘Fresh Kitchen’ facility, or fresh meat and fi sh fi lleted to their own unique specifi cation, we continue to support some of the UK’s leading foodservice brands - from independents to large groups - by helping them to navigate their way through the many new challenges they face, such as accurately predicting volumes, and the industry wide staff and skills shortages.”

Fresh Direct delivers locally and globally sourced fruit, veg, and dairy across the UK. M&J Seafood brings local fi sh and seafood, along with the best of the world’s catch, to the kitchen door every morning. Fine food specialist, Wild Harvest, provides the very best seasonal ingredients to some of the UK’s best restaurants. The Group is completed by regional provenance specialist KFF, and Freshfayre, masters in fresh deli products, sandwiches, soup, and bakery.

Sysco is a global player in selling, marketing and distributing food products to restaurants, healthcare and educational facilities, lodging establishments and other customers who prepare meals away from home. Its family of products also includes equipment and supplies for the foodservice and hospitality industries.